Finance

HSBC’s Play for Mideast Wealth Marred by Exits, Regulatory Curbs

  • HSBC hired Aladdin Hangari to overhaul Mideast wealth business
  • Wealth division is seen as key to the bank’s future growth
An HSBC office in the Middle East.Photographer: Chris Ratcliffe/Bloomberg
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At HSBC Holdings Plc, a star hire who was supposed to reinvigorate the firm’s private banking business in the Middle East is facing a reality check.

Aladdin Hangari’s efforts to build HSBC’s wealth offerings in the region have been hindered by a bevy of high profile departures — including his predecessor Sobhi Tabbara — and fresh regulatory restrictions that will limit his ability to bring on Gulf royals and their associates as new customers, according to people familiar with the matter.